Japan Ferrous Scrap Price Hits First Drop in 1 Month

Japanese ferrous scrap market price decreased for the first time in about a month due to slower export transaction for East Asia including South Korea. Domestic largest electric furnace steel maker, Tokyo Steel Manufacturing and other electric furnaces reduced scrap purchase price on Tuesday for the first time since the end of March. Japanese trade firm sources see Japanese scrap price is higher both for domestic and export price than US scrap price. The sources see the market price would continue decreasing after Japanese long holidays in early May.

Electric furnaces steel makers pay 38,500-39,500 yen per tonne for H2 grade scrap around Tokyo. Some makers pay around 40,000 yen. Tokyo Steel and other local electric furnaces reduced the scrap purchase price by 1,000 yen on Tuesday. The dealers’ transaction price peaks when export transaction slows and local electric furnaces secured scrap for operation during the holiday.

Electric furnaces pay 39,500-41,000 yen per tonne for H2 grade scrap around Osaka. Some makers pay around 42,000 yen. Godo Steel, Yamato Steel and JFE Bars & Shapes reduced scrap purchase price by 1,000 yen at plants in Himeji on Tuesday when Tokyo Steel reduced the scrap purchase price on the same day. Electric furnaces left the scrap purchase price unchanged at plants in Osaka on Tuesday. However, a trader source sees the price would decline around Osaka when the dealers would increase the supply to local steel makers when the supply gets looser due to higher shipment from the dealers to steel makers and higher shipment from Tokyo to Osaka.